Hilton Grand Vacations (NYSE:HGV) Downgraded by Zacks Research to "Strong Sell"

Key Points

• Zacks Research downgraded Hilton Grand Vacations to “strong sell” from “hold,” although the broader analyst consensus remains “hold” with an average price target of $54.67.
• HGV shares opened at $34.78, near their 52-week low of $33.99, after the company slightly missed quarterly EPS and revenue expectations despite 7.3% year-over-year revenue growth.
• The company authorized a $600 million stock buyback, allowing it to repurchase up to 17% of outstanding shares; institutional investors own 97.23% of the stock.

Hilton Grand Vacations (NYSE:HGV - Get Free Report) was downgraded by equities researchers at Zacks Research from a "hold" rating to a "strong sell" rating in a research report issued to clients and investors on Monday, Zacks reports.

A number of other research firms have also commented on HGV. Truist Financial dropped their price target on shares of Hilton Grand Vacations from $71.00 to $69.00 and set a "buy" rating on the stock in a research report on Thursday, September 10th. Citigroup reiterated a "market outperform" rating on shares of Hilton Grand Vacations in a research note on Friday, September 4th. Morgan Stanley dropped their target price on shares of Hilton Grand Vacations from $58.00 to $54.00 and set an "equal weight" rating on the stock in a report on Tuesday, August 18th. Susquehanna began coverage on shares of Hilton Grand Vacations in a report on Tuesday, August 18th. They set a "neutral" rating and a $50.00 price target for the company. Finally, The Goldman Sachs Group lowered their price target on Hilton Grand Vacations from $55.00 to $47.00 and set a "neutral" rating on the stock in a research report on Friday, July 31st. Four analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Hold" and an average target price of $54.67.

Hilton Grand Vacations Price Performance

Shares of NYSE:HGV opened at $34.78 on Monday. The stock has a market capitalization of $2.70 billion, a P/E ratio of 19.65, a P/E/G ratio of 0.35 and a beta of 1.61. The business has a 50-day moving average of $41.26 and a two-hundred day moving average of $45.57. Hilton Grand Vacations has a fifty-two week low of $33.99 and a fifty-two week high of $55.40. The company has a debt-to-equity ratio of 6.18, a current ratio of 5.02 and a quick ratio of 3.20.

Hilton Grand Vacations (NYSE:HGV - Get Free Report) last issued its quarterly earnings data on Thursday, July 30th. The company reported $0.89 EPS for the quarter, missing analysts' consensus estimates of $0.94 by ($0.05). Hilton Grand Vacations had a net margin of 2.86% and a return on equity of 20.40%. The company had revenue of $1.36 billion for the quarter, compared to analyst estimates of $1.38 billion. During the same period in the prior year, the company posted $0.54 EPS. The business's revenue was up 7.3% on a year-over-year basis. On average, equities research analysts predict that Hilton Grand Vacations will post 4.4 EPS for the current fiscal year.

Hilton Grand Vacations declared that its board has approved a stock buyback plan on Thursday, August 20th that authorizes the company to buyback $600.00 million in shares. This buyback authorization authorizes the company to purchase up to 17% of its stock through open market purchases. Stock buyback plans are generally an indication that the company's board of directors believes its shares are undervalued.

Insiders Place Their Bets

In other Hilton Grand Vacations news, insider Charles Corbin, Jr. sold 20,691 shares of the firm's stock in a transaction on Thursday, August 6th. The shares were sold at an average price of $46.90, for a total value of $970,407.90. Following the sale, the insider directly owned 47,924 shares in the company, valued at $2,247,635.60. This trade represents a 30.16% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. 3.10% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Hilton Grand Vacations

Several hedge funds have recently made changes to their positions in HGV. Persistent Asset Partners Ltd acquired a new position in Hilton Grand Vacations in the 2nd quarter valued at approximately $63,000. Bard Associates Inc. bought a new stake in shares of Hilton Grand Vacations during the fourth quarter valued at approximately $29,000. Leonteq Securities AG increased its position in shares of Hilton Grand Vacations by 189.7% during the first quarter. Leonteq Securities AG now owns 672 shares of the company's stock valued at $26,000 after purchasing an additional 440 shares during the period. Nykredit A S acquired a new position in shares of Hilton Grand Vacations in the second quarter valued at $38,000. Finally, Allworth Financial LP acquired a new position in shares of Hilton Grand Vacations in the second quarter valued at $43,000. Institutional investors own 97.23% of the company's stock.

Hilton Grand Vacations Company Profile

Hilton Grand Vacations Inc NYSE: HGV is a global vacation ownership company that develops, markets, sells and manages timeshare interests and related travel experiences. Through its vacation ownership programs, customers purchase points or interests that can be used for stays at a network of resorts and accommodations, often with access to exchange and reservation services.

The company operates a portfolio of vacation ownership brands and offerings, including Hilton Grand Vacations, Hilton Club, HGV Max and properties associated with Diamond Resorts and Bluegreen Vacations.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.